Petsec said today that its bid - of US$1,273,700 million - was the highest of four bids received by the US Department of Interior Minerals Management Service (MMS) at its lease sale held on March 17.

The lease is adjacent to and west of the Main Pass 104 lease which Petsec held previously and on which Petsec discovered and produced oil and gas. The lease is approximately 40 km northeast of the Mississippi Delta in approximately 8m of water.

Petsec Energy, which will be operator and own a 55% working interest of the lease, expects to start drilling at Main Pass 19 in late 2004, following the four wells to be drilled at Vermilion 258 that are targeted to commence this September.